Company to focus resources to better support global OEM customers
TROY, Mich., Oct. 28 /PRNewswire-FirstCall/ -- ArvinMeritor, Inc.
(NYSE: ARM) today announced its plans to divest the company's Light Vehicle
Aftermarket (LVA) business group and to take a non-cash goodwill impairment
charge of $190 million, or $2.77 per diluted share, in its LVA business in the
fiscal fourth quarter of 2004. In addition, the company announced its plan to
divest its Roll Coater coil coating business, a wholly owned subsidiary.
These moves are designed to sharpen ArvinMeritor's focus on supporting its
growing list of global Light Vehicle Systems (LVS) original equipment
manufacturing (OEM) customers and its Commercial Vehicle Systems (CVS) OEM and
"These divestitures will enable ArvinMeritor to leverage our core
competencies in the global automotive and commercial truck markets to provide
the innovative solutions that give our OE customers a competitive edge," said
ArvinMeritor Chairman, CEO and President Charles G. "Chip" McClure. "By
concentrating our resources -- and longstanding engineering and design
expertise -- on our core competencies, we will continue to generate even more
value for our customers and our shareowners.
"LVA has earned a strong reputation for providing some of the world's
best-known brands to a diverse and global customer base," McClure added. "In
order for LVA to reach its full potential and succeed in the future, however,
it needs to move forward under new owners whose strategic priorities include
building critical mass in the business and providing it with product
development and brand support.
"This is a customer-focused business with a long track record of exemplary
service and expertly managed logistics and distribution capabilities," said
McClure. "During the sales process, we remain committed to providing excellent
service, high-quality products and competitive prices. In doing so, we will
continue to strengthen our long-term relationships with the leading Light
Vehicle Aftermarket customers."
Lehman Brothers has been retained as an advisor for the LVA sale process.
The company will report the LVA and coil coating businesses as
discontinued operations when it reports its fourth-quarter earnings on Nov.
15, 2004. Additional information concerning these actions will be provided at
"We believe these decisions are necessary steps to improve our financial
flexibility and strengthen our long-term profitability," said McClure.
The company plans to use the proceeds of the sales of the LVA and coil
coating businesses to strengthen the balance sheet and selectively reinvest in
ArvinMeritor's core LVS and CVS business segments. The company expects to
complete the divestitures during the 2005 fiscal year.
ArvinMeritor's Light Vehicle Aftermarket (LVA) business group supplies
exhaust systems, filters, and ride control and motion control products to
retailers, distributors and all major car companies around the world. LVA
posted more than $0.8 billion in sales during fiscal year 2003, and employs
approximately 5,000 people at 21 facilities in seven countries. The strong
family of LVA brands has earned customer confidence for quality and value for
close to 100 years.
Roll Coater Inc. is a leading provider of automated, high-speed coil
coating services and other value-added metal processing services to a diverse
customer base, including the transportation, appliance, HVAC, construction,
lighting and other industries. The business, which is headquartered in
Indianapolis, Ind., is well known for offering innovative and cost-effective
solutions to its customers. Roll Coater posted approximately $0.2 billion in
sales during fiscal year 2003 and employs approximately 500 people at four
facilities in the United States.
ArvinMeritor, Inc. is a premier $8 billion global supplier of a broad
range of integrated systems, modules and components to the motor vehicle
industry. The company serves light vehicle, commercial truck, trailer and
specialty original equipment manufacturers and related aftermarkets.
Headquartered in Troy, Mich., ArvinMeritor employs approximately 32,000 people
at more than 150 manufacturing facilities in 27 countries. ArvinMeritor
common stock is traded on the New York Stock Exchange under the ticker symbol
ARM. For more information, visit the company's Web site at:
This press release also contains statements relating to future results of
the company (including certain projections and business trends) that are
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those projected
as a result of certain risks and uncertainties, including, but not limited to,
global economic and market conditions; the demand for commercial, specialty
and light vehicles for which the company supplies products; risks inherent in
operating abroad, including foreign currency exchange rates; availability and
cost of raw materials; OEM program delays; demand for and market acceptance of
new and existing products; successful development of new products; reliance on
major OEM customers; labor relations of the company, its customers and
suppliers; successful integration of acquired or merged businesses; the
ability to achieve the expected annual savings and synergies from past and
future business combinations; success and timing of potential divestitures;
potential impairment of long-lived assets, including goodwill; competitive
product and pricing pressures; the amount of the company's debt; the ability
of the company to access capital markets; credit ratings of the company's
debt; the outcome of existing and any future legal proceedings, including any
litigation with respect to environmental or asbestos-related matters; as well
as other risks and uncertainties, including, but not limited to, those
detailed from time to time in the filings of the company with the Securities
and Exchange Commission.
SOURCE ArvinMeritor, Inc.
CONTACT: Media Inquiries: Lin Cummins, +1-248-435-7112,
email@example.com , or Investor Inquiries: Alice McGuire,
+1-248-655-2159, firstname.lastname@example.org , both of ArvinMeritor, Inc.
Web site: http://www.arvinmeritor.com